OPEC+ Decision To Slash Oil Production 'Does Not Make Sense' For Group - US Treasury Dept.

The OPEC+ group of countries' decision to slash oil production by 2 million barrels per day starting in November does not make sense given their market objectives, Deputy US Treasury Secretary Wally Adeyemo said on Friday

WASHINGTON (UrduPoint News / Sputnik - 07th October, 2022) The OPEC+ group of countries' decision to slash oil production by 2 million barrels per day starting in November does not make sense given their market objectives, Deputy US Treasury Secretary Wally Adeyemo said on Friday.

"I think that the idea that this was done in anticipation of a drop in demand does not make sense in light of the fact that one of the biggest drivers of that drop in demand is high inflation costs related to energy. That's why I think this doesn't make sense for OPEC as well, because ultimately they should care deeply about making sure that we have a strong, robust global economy that is growing, which will allow them to continue to be able to sell their product to that global economy," Adeyemo said.

Earlier this week, OPEC+ decided to begin reducing oil production by 2 million barrels per day starting in November, a move the Biden administration called "shortsighted" amid the looming energy crisis in Europe.

The Western sanctions imposed on Russia in response to its special military operation in Ukraine have negatively impacted the global energy markets, particularly in Europe, given the traditional reliance on Russian sources of fuel. The situation is expected to worsen come wintertime.

The Biden administration is considering alternative options to address energy market concerns, including possibly loosening US sanctions on oil producer Venezuela to allow the energy company Chevron to start pumping oil there, according to US media reports.

Former US President Donald Trump has criticized the Biden administration for "begging" foreign nations for oil instead of bolstering domestic energy production.